Signs of an economic recovery are showing and like you, I hope they take hold soon. In the meantime, we continue working diligently to get our state and our economy back on track. While the state’s unemployment rate continues to be around 11 percent, state efforts with the aid of federal stimulus dollars have helped to prevent an already dire jobless situation from growing worse. Late last week, officials reported that federal stimulus spending flowing through state agencies has created or saved 24,440 jobs. In addition, Site Selection Magazine ranked North Carolina as the number one business climate in the country for the fifth year in a row [Top 5: 1-NC, 2-TX, 3-VA, 4-OH, 5-TN].
Many of our efforts in Raleigh have focused on keep North Carolinians in their homes. We made important strides toward protecting North Carolina homeowners throughout this past legislative session because we believe housing is a cornerstone of community. You cannot have strong communities if people lack housing.
The following information highlights significant legislation passed this year pertaining to the economy and jobs and protecting North Carolina homeowners.
If you have any questions or if I can be of assistance, please feel free to contact me. Thank you as always for your interest in the work of the General Assembly and state government and thank you for your support.
Economy and Jobs
_We passed a new law that helped North Carolina bring in a new Apple, Inc. facility that will be required to invest $1 billion in the state. The law (S.L. 2009-54 – SB 575) changes the way corporate income tax liability is calculated for multi-state taxpayers by considering only the company’s sales in the state when determining their tax bills. The existing formula also accounts for companies’ property holdings and payroll. The change applies only to companies that invest $1 billion or more over a nine-year period. No company in the state qualified for the incentive before Apple, Inc. announced that they would be locating their new facility in North Carolina, rather than Virginia.
_We have passed a law to extend the sunset of the Job Development Investment Grant Program, commonly known as JDIG (S.L. 2009-394 – HB 1516). The intent of the program is to foster job creation and investment in the economy of this state. In the years that JDIG has been in effect, the state of North Carolina has taken in significantly more money than has been expended on the program. JDIG has proven to be a valuable asset to the state, especially during these uncertain economic times. Job Development Investment Grants are awarded only to new and expanding businesses and industrial projects whose benefits exceed the costs to the state and which would not be undertaken in North Carolina without the grant. Since the first grant was awarded in 2003, the program has been responsible for creating commitments for more than 30,000 jobs and $5 billion in investment in North Carolina.
_North Carolina will establish a Financial Literacy Council to coordinate and expand the financial education available to all North Carolinians. The new law is meant to promote financial education in public schools and across the state (S.L. 2009-265 – SB 1019).
_This year’s budget will allocate $5 million of the funds received by the State under the American Recovery and Reinvestment Act to be appropriated to the State Energy Office to the Green Business Fund. The Green Business Fund provides grants to private businesses with less than 100 employees, non-profit organizations, and State agencies to encourage the growth of a green economy in North Carolina.
Protecting Homeowners
_North Carolinians who have been victimized by predatory mortgage lenders will be helped under a new state law (S.L. 2009-374 – HB 1523). The primary intent of the S.A.F.E. Mortgage Licensing Act is to ensure that mortgage loan originators operate ethically. The legislation gives the Commissioner of Banks broad authority to enforce this law.
_ Homeowners associations would be required to make reasonable and diligent efforts to locate and notify a lot owner prior to filing a claim of lien for assessments -- the legal right to keep or sell somebody else's property as security for a debt, under a new state law (S.L. 2009-515 – HB 806).
_The Statutory Homestead Exemption is increased significantly under a new state law (S.L. 2009-417 – HB 1058). The legislation applies to an individual debtor’s aggregate interest up to $35,000 in value, in real property or personal property that the debtor or a dependent of the debtor uses as a residence. Previously, the Exemption applied only to the aforementioned asset with a value of less than $18,500.
_We passed legislation to provide that it is a violation of the state’s Fair Housing Act to discriminate in land-use decisions of the permitting of development based on the fact that a development contains affordable housing units (S.L. 2009-533 – SB 810). The law adds language to the State Fair Housing Act to make it an unlawful discriminatory housing practice to discriminate in land-use decisions or in the permitting of development based on race, color, religion, sex, national origin, handicapping condition, familial status, or, except as otherwise provided by law, the fact that a development or proposed development contains affordable housing units for families or individuals with incomes below 80 percent of area median income. However, it is not a violation to make land-use decisions or permit development based on considerations of limiting high concentrations of affordable housing.
_I am proud to tell you that our diligent efforts are beginning to pay off in a very real way. It has been reported that more than 2,000 North Carolina homeowners have avoided foreclosure through the State Home Foreclosure Prevention Project during the last 10 months. Officials said the State Home Foreclosure Prevention Project has helped prevent 2,040 foreclosures and provided foreclosure prevention and budgeting advice to more than 6,000 homeowners. Officials said avoiding those foreclosures saved the financial system and neighboring property values from losses estimated at $175 million.
Prepared with the assistance of the Speaker’s Office of Communications
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Regular Reports On What Is Happening In the NC General Assembly of Interest to citizens in District 51 by Representative Jimmy Love
